Key Takeaways:
- Average cost per lead varies from $20 (personal loans) to $200+ (commercial solar) depending on industry and lead type
- Exclusive leads cost more per lead but almost always deliver a lower cost per acquisition than shared leads
- Cost per lead is a useful metric, but cost per acquisition (CPA) is what actually determines profitability
- The biggest factor affecting your CPL is not your market or industry; it is your follow-up speed and sales process
- A "good" CPL is any number where your revenue per closed deal significantly exceeds your total cost to acquire that customer
Every sales team and business owner asks the same question: "Am I paying too much for leads?" It is a fair question but also an incomplete one. A $200 lead that converts into a $50,000 contract is infinitely more valuable than a $15 lead that never picks up the phone.
This guide provides up-to-date cost per lead benchmarks across every major industry where lead generation drives revenue, and more importantly, it shows you how to evaluate whether your CPL is actually working for your business.
How to Calculate Cost Per Lead
The formula itself is simple:
Cost Per Lead (CPL) = Total Marketing or Lead Gen Spend / Number of Leads Generated
If you spent $5,000 on a lead generation campaign and received 50 leads, your CPL is $100.
But here is where most businesses get it wrong: they stop at CPL and never calculate the metric that actually matters.
Why Cost Per Acquisition Matters More Than CPL
Cost Per Acquisition (CPA) = Total Marketing or Lead Gen Spend / Number of Closed Deals
If those 50 leads from the example above produced 10 closed deals, your CPA is $500. That is the real number. Your CPL tells you how much it costs to start a conversation. Your CPA tells you how much it costs to get a customer.
Here is a scenario that illustrates why this distinction is critical:
| Metric | Shared Leads | Exclusive Leads |
|---|---|---|
| Cost per lead | $40 | $100 |
| Leads purchased | 100 | 100 |
| Total spend | $4,000 | $10,000 |
| Close rate | 5% | 20% |
| Closed deals | 5 | 20 |
| Cost per acquisition | $800 | $500 |
The shared leads look cheaper. The exclusive leads are cheaper. This is why we always recommend evaluating exclusive vs. shared leads based on CPA, not CPL.
2026 Cost Per Lead Benchmarks by Industry
The following benchmarks reflect current market pricing for both shared and exclusive leads across major industries. These numbers represent typical ranges; your actual CPL will vary based on geography, competition, seasonality, and lead source.
Comprehensive Industry CPL and CPA Table
| Industry | Shared Lead CPL | Exclusive Lead CPL | Typical Close Rate (Exclusive) | Average Deal Size | Estimated CPA (Exclusive) | ROI Rating |
|---|---|---|---|---|---|---|
| Roofing (Residential) | $25-$80 | $50-$150 | 15-25% | $8,000-$15,000 | $300-$800 | Excellent |
| Roofing (Insurance/Storm) | $30-$100 | $75-$200 | 20-30% | $12,000-$25,000 | $350-$900 | Excellent |
| Solar (Residential) | $30-$80 | $70-$200 | 10-18% | $20,000-$35,000 | $500-$1,500 | Very Good |
| Solar (Commercial) | $50-$150 | $150-$400 | 5-12% | $100,000+ | $1,500-$5,000 | Good |
| Mortgage (Purchase) | $20-$60 | $50-$150 | 8-15% | $3,000-$8,000 (commission) | $500-$1,500 | Good |
| Mortgage (Refinance) | $15-$50 | $40-$120 | 10-20% | $2,000-$5,000 (commission) | $300-$900 | Very Good |
| Business Loans / MCA | $20-$75 | $50-$175 | 8-15% | $3,000-$15,000 (commission) | $500-$1,500 | Very Good |
| Credit Repair | $10-$35 | $25-$75 | 15-25% | $500-$2,000 (LTV) | $150-$400 | Good |
| Personal Loans | $8-$25 | $20-$60 | 10-20% | $200-$1,000 (commission) | $150-$500 | Moderate |
| Insurance (Home/Auto) | $15-$50 | $35-$100 | 10-18% | $1,000-$3,000 (LTV) | $300-$800 | Good |
| HVAC | $25-$80 | $50-$150 | 15-25% | $5,000-$12,000 | $300-$800 | Very Good |
| Legal (Personal Injury) | $50-$200 | $150-$500 | 5-10% | $10,000-$100,000+ | $2,000-$8,000 | Good |
| Home Services (General) | $15-$50 | $30-$100 | 12-22% | $2,000-$8,000 | $200-$600 | Very Good |
Note: Deal sizes for financial services reflect commission or customer lifetime value, not the loan or service amount itself.
Industry-Specific Breakdowns
Roofing Lead Costs
Roofing is one of the most active lead generation markets in the US. High ticket sizes make even expensive leads profitable. The key differentiator is exclusive vs. shared leads. With shared roofing leads, you are typically competing against 3-5 other contractors. With exclusive roofing leads from LeadsHunt, you are the only contractor receiving the homeowner's information.
Seasonality matters enormously. CPL spikes in spring and after major storms. Off-season leads (winter in northern markets) are cheaper and often easier to close because fewer contractors are actively buying.
Solar Lead Costs
Solar leads have some of the widest CPL ranges because project sizes and sales cycles vary dramatically. A residential solar installation is a very different sale than a commercial array. For current pricing details, read our complete guide to solar lead costs.
The most effective solar sales teams combine purchased exclusive solar leads with referral programs and community solar events.
Mortgage Lead Costs
Mortgage leads fluctuate with interest rates. When rates drop, refinance demand surges and CPL decreases because more consumers are actively searching. When rates are high, lead volume drops and costs increase.
Purchase leads tend to cost more than refinance leads because purchase borrowers are further along in their buying journey and represent higher-value transactions. Learn more about building a consistent pipeline in our mortgage lead generation strategies guide.
Get exclusive, verified mortgage leads delivered in real time to your team.
Business Loan and MCA Lead Costs
Business loan leads, including merchant cash advance (MCA) leads, occupy a unique space. Borrowers often have urgent funding needs, which means faster sales cycles but also higher competition among lenders. Read our MCA leads guide or our business loan lead generation guide for strategies specific to this vertical.
Exclusive business loan leads from a verified provider ensure you are the only lender contacting each prospect.
Credit Repair Lead Costs
Credit repair has some of the lowest CPL of any industry because the barrier to entry for generating interest is low. Many consumers need credit repair but do not yet know it is a service they can buy. The challenge is not lead cost but lead qualification and lifetime value.
Successful credit repair companies focus on customer retention and monthly recurring revenue. A $25 lead that stays for 8 months at $100/month is worth $800 in revenue. Explore proven credit repair lead generation strategies and browse exclusive credit repair leads.
Personal Loan Lead Costs
Personal loan leads are the most affordable in this comparison but also generate the smallest commissions per transaction. Volume is the game here. Lenders who buy personal loan leads need efficient, automated sales processes to make the economics work.
Factors That Affect Your Cost Per Lead
1. Geography
Leads in major metros (New York, Los Angeles, Houston) cost more than leads in smaller markets. Competition drives pricing. A roofing lead in Dallas might cost twice what the same quality lead costs in a mid-size city.
2. Seasonality
Every industry has peak and off-peak seasons. Roofing peaks in spring and summer. Solar peaks in spring through fall. Mortgage volume fluctuates with interest rates. HVAC spikes in extreme weather months. Buying leads in off-peak periods often reduces CPL by 20-40%.
3. Lead Exclusivity
As demonstrated in the table above, exclusive leads cost more per lead but less per acquisition. This is the single most impactful factor in your effective CPL. We broke this down thoroughly in our exclusive vs. shared leads guide.
4. Lead Verification Level
Leads that have been phone-verified, email-verified, or filtered for intent cost more than raw form submissions. The additional cost is almost always worth it because unverified leads have significantly higher junk rates.
5. Your Sales Process
This one is on you, not your lead provider. Two companies buying the same leads at the same price can have wildly different CPAs based on their sales process. Responding within five minutes alone can improve your close rate by 5-10x.
How to Reduce Your Cost Per Lead
Negotiate Volume Discounts
Most lead providers offer lower per-lead pricing at higher volumes. If you are buying 50 leads per month and can commit to 100, ask about volume pricing.
Improve Your Conversion Rate
Reducing CPL is not the only way to improve economics. If you keep your CPL flat but improve your close rate from 15% to 20%, your CPA drops by 25%. Invest in sales training, CRM automation, and speed to lead.
Test Multiple Channels
Do not assume your first lead source is your best one. Run parallel tests with 2-3 providers for 60-90 days, tracking CPA (not just CPL) for each. Then shift budget toward the winner.
Optimize for Off-Peak Periods
If your business can operate year-round, buying leads in off-peak months when competition and prices are lower can significantly reduce your annual average CPL.
Focus on Lifetime Value
In industries like credit repair, insurance, and financial services, one customer may be worth thousands over their lifetime. A higher upfront CPL is justified when customer retention is strong.
When a Higher CPL Is Actually Better
It sounds counterintuitive, but paying more per lead is often the smarter move. Here is when:
- Exclusive leads vs. shared leads - Higher CPL, lower CPA, less wasted time.
- Verified leads vs. raw submissions - Higher CPL, fewer junk leads, better contact rates.
- High-intent leads vs. low-intent - A homeowner requesting a roofing quote today is worth more than someone who downloaded a "roof maintenance checklist."
- Leads in your exact service area - Paying more for geographically precise leads saves you from driving an hour for a $50 lead.
The bottom line: optimize for cost per acquisition and revenue per deal, not cost per lead.
Frequently Asked Questions
What is a good cost per lead for my industry?
Refer to the benchmark table above for your specific industry. But remember that a "good" CPL is one where your cost per acquisition allows you to profit on every closed deal. If your average roofing job nets $4,000 in profit and your CPA is $500, your CPL is working regardless of whether it is above or below the industry average.
Why are my leads more expensive than the benchmarks listed here?
Several factors can push your CPL above average: operating in a highly competitive metro area, targeting a very specific niche (like commercial solar vs. residential), or buying during peak season. Also confirm that you are comparing the right lead types. Exclusive leads will always cost more than shared leads.
How do I know if my lead provider is overcharging me?
Request a trial period and track your CPA, not just your CPL. Then compare your CPA to the benchmarks in this guide. If you are paying $150 per exclusive roofing lead and closing at 20%, your $750 CPA is well within the healthy range for an industry with $10,000+ job sizes.
Should I switch to cheaper leads if my CPL is above the industry average?
Not necessarily. Cheaper leads often have lower close rates, which can actually increase your CPA. Before switching, calculate your current CPA and compare it to what you would realistically achieve with cheaper, lower-quality leads. The math frequently favors staying with higher-quality, higher-CPL leads.
How often do these benchmarks change?
CPL benchmarks shift gradually year to year based on competition, advertising costs, and market conditions. Expect 5-15% annual changes in most industries. Major events like interest rate changes (mortgages), new incentive programs (solar), or severe storm seasons (roofing) can cause sharper short-term fluctuations.
What is the most cost-effective way to generate leads?
For most B2B and home services companies, the most cost-effective approach combines exclusive purchased leads for immediate pipeline with organic SEO and referral programs for long-term efficiency. This gives you consistent volume now while building channels that reduce your average CPL over time.